The newly-formed Department of Government Efficiency (DOGE) won’t manage to slash $2 trillion from the federal budget, its co-chair Elon Musk admitted on Wednesday.
During a conversation with political strategist, Mark Penn, broadcast on X on Wednesday, the controversial CEO rowed back on the lofty target that he had set out during the Trump presidential campaign last year. Musk described the $2 trillion figure as a “best-case outcome,” claiming instead that DOGE had a “good shot” at cutting half of it.
While far from an admission of defeat, the downgraded estimate will still come as a blow to Musk and Trump, whose second term is just days away. At the time, commentators had been quick to dismiss the touted figure as implausible. This admission might serve as a striking reflection of the new government in miniature, with big claims ultimately leading to dampened expectations.
Musk Rows Back on Earlier Budget Promises
Elon Musk, the co-chair of DOGE, has claimed that the $2 trillion budget slash he targeted last year is unlikely. In an interview with Mark Penn on Wednesday, the tech magnate called the target a “best-case outcome.” Instead, he said the department had a “good shot” at eradicating $1 trillion from the federal budget.
“I think we’ll try for $2 trillion. I think that’s the best-case outcome. But I do think that you kind of have to have some overage. I think if we try for $2 trillion, we’ve got a good shot at getting 1.” – Elon Musk
The new comments represent a reversal on Musk’s earlier claims. At a Trump rally in New York on October 27, 2024, the Tesla boss promised to cut the federal budget by “at least $2 trillion.”
Initial Claims Revealed to be Wildly Unrealistic
At the time, commentators were quick to dismiss Musk’s claims. Bob Elliott, chief investment officer at Unlimited Funds, said they were “totally implausible.” For reference, total discretionary funding amounts to about $1.7 trillion at present, and includes transportation, education, housing, and environmental programs.
To meet his lofty aims, Musk would have to wipe out all of this spend – and then some.
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Experts have speculated as to whether Musk and DOGE co-chair Vivek Ramaswamy might take aim at Social Security programs like Medicare and Medicaid, which provides healthcare support for economically disadvantaged people. Musk himself has previously warned that DOGE cuts could create “temporary hardship” for US citizens.
Despite the revised estimates, he sounded a note of optimism for his department’s objectives.
“If we can drop the budget deficit from $2 trillion to $1 trillion and free up the economy to have additional growth, such that the output of goods and services keeps pace with the increase in the money supply, then there will be no inflation. So that, I think, would be an epic outcome.” – Elon Musk
A Sign of Things to Come?
President-elect Donald Trump isn’t taking office for over a week, but the rumor mill is already working overtime. Since the election result was certified in November 2024, and Musk appointed to his new role as “cost cutter-in-chief,” speculation has mounted as to what the Tesla boss might actually do now that he has the ear of the leader of the free world.
Hyperbole and grandstanding were key features of the Trump campaign trail, at which Musk proved an immovable fixture. From blasting Vice President Kamala Harris for “importing voters” to attacking the Center for Countering Digital Hate (CCDH), the X CEO pulled no punches when it came to outlining his and Trump’s shared worldview.
With this recent admission, it would appear that some of his claims are starting to come unstuck. Just how far this trend goes remains to be seen – but it will be interesting to observe how Trump’s supporters react if it continues.
